TMI Blog1988 (1) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the cash discount of 2% in 1980-81 and 2.5% in 1981-82. They used to issue invoices for the full price without the deduction of cash discount. Simultaneously, they used to send an advice to their Bank (through whom the customer retired the delivery documents) stating, inter alia, that if the customer retired the documents within 7 days of the presentation, the Bank should collect only the lower price net of the cash discount; otherwise, the Bank should collect the full price as per the invoice. The advice used to mention the full invoice price as well as the net cash discounted price. About 35% of their customers paid the price promptly within 7 days and got benefit of the cash discount. The other 65% did not choose to exercise this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guilty of suppression of true facts which attracted the extended time limit of 5 years for the short levy demand under Section 11A. The Collector (Appeals) agreed with the Asst. Collector and observed that the higher price at which the majority of the goods (65%) were sold was the normal price under Section 4(1)(a). The appellants are now in appeal before us. 3. The appellants assail the demand on the substantive ground [relying on 1984 (17) E.L.T. 4 (Bom.) - Jonson Nicholson (I) Ltd.] as well as on the basis of the normal time limit of six months under Section 11 A. They add that the Bombay High Court held that cash discount allowed for prompt payment of the price was allowable irrespective of whether each customer availed of it or not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrong in submitting mis leading price lists. They have accepted this fault. But we agree with them that by doing so no undue advantage had accrued to them. The department could have taken them to task for faulty preparation of the price lists. But the duty leviable on the goods could not go up just for that reason. The cash discount offered by them was available to all buyers. This fact was also known to all buyers at the time of removal of the goods because the appellants had spelt out the provision regarding cash discount in their price circulars. The appellants naturally gave the benefit of the cash discount only to those customers who fulfilled its condition - payment of the price within 7 days. They could not be expected to give it to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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